Solar Energy Firm Turns Up the Heat With 109% Gains

Semiconductor stocks are surging after a leading chipmaker surpassed earnings estimates, a packaged foods giant trimmed its forecast, and a solar upstart is doubling after announcing an energy storage acquisition. Here’s what’s moving the markets today.

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Futures 📈

What to Watch

Earnings:

• Costco Wholesale Corporation [COST]: Aftermarket

• Dell Technologies Inc. [DELL]: Aftermarket

• Marvell Technology, Inc. [MRVL]: Aftermarket

• Zscaler, Inc. [ZS]: Aftermarket

• NetApp, Inc. [NTAP]: Aftermarket

• Ulta Beauty, Inc. [ULTA]: Aftermarket

• The Cooper Companies, Inc. [COO]: Aftermarket

• Gap, Inc. (The) [GAP]: Aftermarket

Economic Reports:

• Initial jobless claims [May 24]: 8:30 AM

• GDP (First revision) [Q1]: 8:30 AM

• Richmond Fed President Tom Barkin speech: 8:30 AM

• Pending home sales [April]: 10:00 AM

• Chicago Fed President Austan Goolsbee speech: 10:40 AM

• Fed Governor Adriana Kugler speech: 2:00 PM

• San Francisco Fed President Mary Daly speech: 4:00 PM

• Dallas Fed President Lorie Logan speech: 8:25 PM

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Semiconductors

Nvidia Rallies Markets Despite $4.5B China Write-Off

Nvidia (NASDAQ: NVDA) posted stronger-than-expected quarterly results last evening, igniting a rally in semiconductor stocks across Asia, Europe, and the U.S. despite headwinds from ongoing U.S.-China export restrictions.

The graphics chip leader’s shares are up 6.0% in premarket trading today after it reported earnings that surpassed Wall Street projections.

While Nvidia revealed a $4.5 billion write-down in inventory tied to chips blocked from export to China and an estimated $2.5 billion in lost sales, investor sentiment remained upbeat thanks to surging demand for its AI chips.

Global chipmakers are riding the momentum. Japan’s Tokyo Electron closed up over 4%, while South Korea’s SK Hynix, a supplier of high-bandwidth memory to Nvidia, advanced nearly 2%. European firms including ASML, BE Semiconductor, and ASM International also recorded gains.

In the U.S., semiconductor peers such as Marvell Technology are up 5.3% in premarket trading, and Qualcomm is also seeing a 1.8% rise.

Nvidia’s latest performance calmed concerns that AI chip demand might be slowing.

Despite intensifying U.S. export restrictions affecting chemicals and chip-design software, Nvidia’s continued dominance in powering large AI models appears intact—for now—signaling strength not only for the company but for the broader sector.

Electronics Retail

Best Buy Trims Sales Forecast as Tariffs Bite

Best Buy (NYSE: BBY) lowered its annual sales forecast this morning as concerns mount over declining demand and the impact of escalating U.S. tariffs on imported electronics.

The retailer now expects same-store sales for fiscal 2026 to range between a 1% decline and a 1% gain, revising its previous outlook of flat to 2% growth.

The adjustment comes amid signs of weaker consumer appetite for high-cost items like home theaters, gaming systems, and major appliances.

For the first quarter ending May 3, comparable store sales dipped 0.7%, slightly worse than the 0.6% decline anticipated by analysts surveyed by LSEG. Shares of Best Buy are down 3% in premarket trading.

The retailer has significant dependence on Chinese imports for categories such as drones, gaming consoles, and audio gear.

With tariffs raising cost pressures across these segments, Best Buy may face difficulty in maintaining price competitiveness without hurting margins.

Broader economic headwinds, including higher interest rates and elevated borrowing costs, are further dampening discretionary spending.

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Packaged Foods

Hormel Stays on Track Despite Margin Pressures

Hormel Foods (NYSE: HRL) presented earnings that are in line with analyst expectations for the second quarter but slightly below revenue forecasts, and it revised its full-year outlook this morning.

The packaged foods company posted adjusted earnings per share of $0.35 for the quarter, meeting consensus forecasts. Quarterly revenue is at $2.9 billion, falling just short of the $2.92 billion analysts projected.

Sales grew organically by 1%, with the Retail segment showing a 4% increase in profit thanks to improved operational efficiency, even as net sales remained flat. Foodservice revenue rose 4% organically, but the segment’s profit slipped 6% due to margin constraints.

CEO Jim Snee expressed confidence in the second half of the year, citing strong momentum in protein-based, consumer-driven product lines.

Notably, the Applegate brand surpassed category trends, while Jennie-O’s ground turkey line also recorded strong performance.

Hormel narrowed its organic sales growth forecast for fiscal 2025 to a range of 2% to 3%, down from the previously projected 1% to 4%. Adjusted EPS guidance was tightened to $1.58–$1.68, compared to the prior range of $1.58–$1.72.

The company also reported solid year-over-year growth in its Mexican food offerings, which contributed positively to the quarterly results despite ongoing margin headwinds in foodservice.

Zeo Energy Corporation [ZEO] - Last Close: $1.58

Zeo Energy Corp. provides residential solar and energy efficiency solutions. It has revenue in the range of $18-19M per quarter but its net margins are negative. The stock is down 53% YTD.

However, it is surging 109% in premarket trading today following the announcement that it will be acquiring Heliogen in an all-stock deal, aimed at expanding into commercial and industrial-scale energy storage solutions.

Veeva Systems Inc. [VEEV] - Last Close: $234.49

Veeva Systems Inc. is a leading provider of cloud-based software solutions for the global life sciences industry. The firm has seen strong, consistent revenue growth and solid net margins across the last several several years. Its stock is up 10% YTD.

The stock is rising 14.5% in premarket trading today due to the company's strong Q1 FY2025 performance. It has reported revenues of $650.3 million, up 24% year-over-year, and net income of $161.7 million, reflecting a profit margin of approximately 25%.

C3.ai, Inc. [AI] - Last Close: $23.02

C3.ai, Inc., is an enterprise AI software company that provides a suite of AI applications for various industries. The stock has been volatile, down over 33% YTD, and while it has seen solid revenue growth across years, it is struggling with negative net margins.

The stock is up 14% in premarket trading today due to better-than-expected Q4 results and the renewal and expansion of its joint venture with Baker Hughes through June 2028.

Its revenue is up 26% year-over-year, with a non-GAAP loss of $0.16 per share, beating analyst expectations.

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*The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research’s newsletter editors and may represent the partial close of a position.
*This free resource is being sent by Zacks. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service".

Everything Else

• Salesforce edges past expectations and raises outlook as AI and bookings momentum build.

• Strong AI demand lifts Synopsys’ outlook even as China uncertainty and merger scrutiny grow.

• Agilent rides demand for drug development tools to top estimates and raise its outlook.

• HP slashes its forecast as trade tariffs bite into profits and rattle investor confidence.

• Nutanix impresses with a Q3 beat and bullish outlook, even as GF Value signals caution.

• Pure Storage expands services and partnerships as AI demand powers Q1 gains.

• Nordson’s medical unit offsets a sales decline as acquisition drives quarterly outperformance.

• U-Haul’s revenue climbs past forecasts, but a deeper earnings miss weighs on performance.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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